Australian Property

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Govt urged to clean up real estate dirty money

By Leith van Onselen ABC’s The Business last night ran a segment (written report here) on the increasing international pressure on Australia to clamp down on foreign criminals laundering dirty money through Australian homes. Back in April, the Paris-based Financial Action Task Force (FATF) on money laundering released its scathing report on Australia, which found

2

RP Data weekly Australian house price update

By Leith van Onselen In the week ended 3 September 2015, the Core Logic-RP Data 5-city daily dwelling price index, which covers the five major capital city markets, was basically flat (-0.01%), which followed last week’s 0.40% decline (see next chart). Home values rose in Sydney and Brisbane, but fell in Melbourne, Adelaide and Perth

47

Professor badly mis-diagnoses Chinese buyers

By Leith van Onselen Hans Hendrischke, Professor of Chinese Business and Management at the University of Sydney, has produced some laughable “research” today in a bid to prove that Chinese nationals account for just 2% of Australian property sales, therefore, they are not helping to push up home prices. From Domain (my emphasis): Hans Hendrischke compared

68

Australia’s shoddily built high rise shoe boxes

By Leith van Onselen In late May, ABC’s 7.30 Report ran a segment on the cheap combustible cladding that has covered potentially thousands of buildings across Australia, that last November sent a Docklands building into a towering inferno: LEIGH SALES, PRESENTER: When a cigarette was left on a balcony table in Melbourne’s Docklands precinct last

8

How APRA has changed investors’ ability to borrow

By Redom Syed, republished with permission from Property Chat: Last week the APRA chairman delivered a telling speech about the future of the lending market in Australia. The speech was the best public indication yet of what APRA is thinking, what they have done and what they’re likely to do next. Importantly, they also provided

34

Perth apartments: fools gold for foreign buyers

By Leith van Onselen Perth Now has run an article claiming that foreigners are clamouring to buy “cheap” Perth apartments, with up to 40% of sales of new city complexes reportedly being snapped-up by Asian buyers: As Perth’s property market continues to decline, more developers are looking overseas to move stock and are now hiring

39

CEDA revives flawed super-housing fix

By Leith van Onselen The Committee for Economic Development Australia (CEDA) has released a new paper, The super challenge of retirement income policy, outlining its plan for retirement reform. The paper argues that Australia’s ageing population and decreasing housing affordability means the current structure and policies in place may not be robust enough to ensure

2

Queensland’s slow housing recovery

By Leith van Onselen Below is a quick update on the latest fortnightly State Government data on housing transfers and mortgage lodgements for Queensland. As shown below, the number of housing transfers and mortgage lodgements (including refinancings) bottomed in December 2012 and has been rising gradually ever since, commensurate with Queensland housing prices: The number

36

Gotti sounds Triguboffonomic alarm

By Leith van Onselen Robert Gottliebsen (“Gotti”) has gotten off the phone again with his mate, “Highrise” Harry Triguboff, who has asked him to “alert Australia that next year we could face a real estate crisis” if Australia’s banks pull funding from buyers of apartments, which are heading into oversupply. From Business Spectator: The major

11

Investor credit slows as APRA curbs bite

By Leith van Onselen The Reserve Bank of Australia (RBA) today released its private sector credit aggregates data for the month of July: A chart showing the long-run breakdown in the components is provided below: Personal credit growth (0.0% MoM; 0.4% QoQ; 0.9% YoY) remains in the gutter, whereas business credit growth (0.7% MoM; 1.2%

3

HIA new home sales past peak

By Martin North, cross-posted from the Digital Finance Analytics Blog: The HIA New Home Sales Report, a survey of Australia’s largest volume builders, showed a very modest decline of 0.4%. HIA say key leading indicators of home building, including HIA New Home Sales, suggest little prospect for further growth in new home construction in 2015/16.

12

Auction clearances lift despite high volumes

Core Logic-RP Data released its auction market report yesterday, which posted a small rebound in the national auction clearance rate. The preliminary national clearance rate was 75.4%, up from the 74.1% rate recorded last weekend, according to Core Logic-RP Data:   Sydney’s clearance rate fell by 1.8% to 78.1%, whereas Melbourne’s was 77.0%, up significantly

56

Melbourne’s housing BANANA attacks new suburb

By Leith van Onselen Melbourne’s biggest housing BANANA (“Build Absolutely Nothing Anywhere Near Anything”), RMIT planning “expert” Michael Buxton, has spent much of the past decade opposing moves to expand Melbourne’s urban growth boundary (UGB). Curiously, Buxton has also regularly rallied against high rise development across the CBD and inner areas, claiming that it is

83

Inefficient developer charges killing affordability

Cross-posted from The Conversation: Housing affordability is more than just house prices. It also includes ready access to public transport, schools, good road networks, and of course access to all the basic utilities. However, local governments don’t have the money to build all the infrastructure new housing estates need. So developer charges were introduced as

43

Fool says stamp duties are good for us

By Leith van Onselen Motley Fool’s Scott Phillips has penned an article in Fairfax arguing that stamp duty is “good for us” because it “acts as a useful handbrake for out-of-control property speculation”: You see, stamp duty isn’t the evil tax that many – but particularly politicians, real estate agents and home builders – think

24

Mortgage arrears climb in mining regions

By Leith van Onselen Fitch Ratings has released its Australian Mortgage Delinquency report as at 31 March 2015, which reveals a clear lift in mortgage arrears rates in mining regions across Queensland, Western Australia and the Northern Territory. The coal mining region of Mackay in central Queensland has been worst hit, with the dollar value

20

Kouk bears up on housing, economy

By Leith van Onselen Al Jazeera’s Sydney correspondent, Andrew Thomas, has produced an interesting video examining Australia’s housing market and economy, which argues that Australia’s luck is running out, and that the economy faces recession if the mining downturn is met with falling house prices. Included in the video is a rather bearish quote from